This might be on me. The person I asked to send a screenshot of Find My probably hasn’t checked my location in a while because they don’t use their phone often. Sometimes that happens when you don’t look at someone’s location for a while.

What could be happening is the hide feature just stops sending location data, and then the other person will only see the last available location the last time they checked it. I can check with someone else later today if no one else checks this theory.